Alset International, formerly known as Singapore eDevelopment, has entered into a securities purchase agreement on April 5, through its 99.72%-owned subsidiary, GigWorld.
The agreement was signed with Value Exchange International for the proposed subscription of 6.5 million shares in Value Exchange, representing some 18.0% of Value Exchange’s enlarged share capital, for a consideration of US$650,000 ($870,589).
The proposed subscription is expected to be completed on April 5.
Value Exchange is a company incorporated in Nevada, the US, and has an authorised capital stock comprising 100 million shares of common stock, each with a par value of 0.001 US cent, of which 29.7 million shares of common stock have been issued and paid-up. It also has 100 million shares of preferred stock, each with a par value of 0.001 US cent, of which no shares of preferred stock have been issued and paid up.
Based on the audited financial statements of Value Exchange International for the financial year ended Dec 31, 2020, the aggregate net asset value (NAV) and the net tangible asset (NTA) value represented by the subscription shares was approximately US$0.23 million each as at Dec 31, 2020.
Value Exchange International’s market capitalisation was approximately US$2.9 million on April 5.
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According to a statement on the SGX, Alset says the proposed subscription will form a strategic relationship between both companies.
Under the agreement, Lum Kan Fai, a director, vice chairman and president of GigWorld, or a nominee designated by GigWorld will be appointed as a director of Value Exchange International within 10 business days after the closing date.
Following the completion of the proposed subscription, GigWorld will benefit from the services and solutions in computer software programming and integration, and computer systems, internet and information technology systems engineering, consulting, administration and maintenance, including e-commerce and payment processing of Value Exchange International.
Based on the market price of the shares of common stock of Value Exchange International trading on the US OTC Markets Group, Inc. QB Venture Market on April 5, the market value of the subscription shares is approximately US$643,500.
Shares in Alset closed 0.1 cent lower or 1.5% down at 6.4 cents on April 8.
